Security, fraud, and risk Model Bank profiles: Alfa Bank and USAA

Security, fraud, and risk Model Bank profiles: Alfa Bank and USAA

Banks have worked hard to manage the different risks across their institutions. It has been and will remain costly, time consuming and a top priority. Celent profiles two award-winning banks who have modelled excellence in their use of risk management technologies across their banks.

They demonstrated:

  1. Degree of innovation
  2. Degree of difficulty
  3. Measurable, quantitative business results achieved
(Left to right, Martin Pilecky, CIO Alfa-Bank; Gary McAlum, SVP Enterprise Security Group USAA; Joan McGowan, Senior Analyst Celent)

(Left to right, Martin Pilecky, CIO Alfa-Bank; Gary McAlum, SVP Enterprise Security Group USAA; Joan McGowan, Senior Analyst Celent)

ALFA-BANK: SETS THE STANDARDS FOR BASEL COMPLIANCE IN RUSSIA

Alfa-Bank built a centralized and robust credit risk platform to implement Basel II and III standards, simultaneously, under very tight local regulatory deadlines. The bank decided to centralize all corporate credit-risk information onto a single platform that connected to front office systems and processes. Using Misys FusionRisk, Alfa-Bank was able to implement a central default system with a risk rating and risk-weighted asset calculations engine. The initiative is seen as one of the most important initiatives in the bank’s history. The successful completion of the project has placed Alfa-Bank at the forefront for setting standards and best practice methodologies for capital management regulations for the Russian banking industry and Central Bank.

USAA: SECURITY SELFIE, NATIVE FINGERPRINT, AND VOICE SIGNATURE

The game-changer for USAA is to deliver flawless, contextual customer application services that are secured through less intrusive authentication options. The use of biometrics (fingerprint, facial and vocal) to access its mobile banking application positions USAA to be able to compete with Fintechs across the digital banking ecosystem and offer exceptional service to its military and family members.

USAA worked with Daon Inc. to provide biometric solutions paired with its “Quick Logon” dynamic security token technology, which is embedded in the USAA Mobile App for trusted mobile devices. Biometric and token validation focus on who the user is and who the verifiers are and it addresses increasing concerns around the high level of compromise of static user names, passwords, and predictable security questions from sophisticated phishing attacks, external data breaches, and off-the-shelf credential-stealing malware.

For more information on these initiatives, please see the case study abstract on our website.     

Joan McGowan About Joan McGowan

Joan McGowan is a senior analyst with Celent's banking practice. Her research focus is on risk management, regulatory compliance, data security, and data analytics, with a concentration on disruptive technologies for risk transparency and data visualization. She brings a "risk-reward" perspective to strategic decision-making.

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